According to media reports, the Central cabinet could soon decide on raising the minimum wage to Rs 26,000, in what could be a major 7th Pay Commission update. Thousands of central government employees have long pushed for an increase in the fitting factor.
If the government raises the fitment factor, the central government's salary will rise in tandem. The government, on the other hand, has yet to make a choice. The minimum remuneration for central government employees is currently Rs 18,000 per month. It could rise to Rs 26,000 with the increase in fitment factor.
But for such a hike to take place, the Central government will have to increase the fitment factor to 3.68 times from 2.57 times.
Here’s How You Can Calculate the Fitment Factor Calculation:
If the fitment factor is increased to 3.68 by the Central government, the basic salary of the employees will become Rs. 26,000.
So, for instance, if the government employees’ minimum salary is Rs 18,000 then the minimum salary will be Rs 46,260 excluding the allowances, according to the 2.57 fitment factor.
If the fitment factor is 3.68, however, the pay rises to Rs 95,680 (26000X3.68 = 95,680). In June 2017, the Union Cabinet adopted the 7th Pay Commission's proposals with 34 changes. The revised pay scales provide for an increase in the minimum basic salary from Rs 7,000 to Rs 18,000. However, the highest level of pay, Secretary, increased from Rs 90,000 to Rs 2.5 lakh. The basic salary for Class 1 officers was Rs 56,100.
So, until the government makes an official announcement on the fitment factor, nothing can be declared with certainty.
Employees in the federal government have no choice but to wait for the news, which could come in the coming days.
